Sun Pharma Advanced Research Company Limited
Sun Pharma Advanced Research Company Limited Fundamental Analysis
Sun Pharma Advanced Research Company Limited (SPARC.BO) shows moderate financial fundamentals with a PE ratio of 4.87, profit margin of 82.65%, and ROE of 11.09%. The company generates $18.8B in annual revenue with weak year-over-year growth of -5.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SPARC.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSPARC.BO demonstrates superior asset utilization.
Valuation Score
ExcellentSPARC.BO trades at attractive valuation levels.
Growth Score
ModerateSPARC.BO shows steady but slowing expansion.
Financial Health Score
ExcellentSPARC.BO maintains a strong and stable balance sheet.
Profitability Score
WeakSPARC.BO struggles to sustain strong margins.
Key Financial Metrics
Is SPARC.BO Expensive or Cheap?
P/E Ratio
SPARC.BO trades at 4.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SPARC.BO's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Sun Pharma Advanced Research Company Limited at 5.65 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.39 times EBITDA. This is generally considered low.
How Well Does SPARC.BO Make Money?
Net Profit Margin
For every $100 in sales, Sun Pharma Advanced Research Company Limited keeps $82.65 as profit after all expenses.
Operating Margin
Core operations generate 84.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.09 in profit for every $100 of shareholder equity.
ROA
Sun Pharma Advanced Research Company Limited generates $71.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sun Pharma Advanced Research Company Limited generates limited operating cash flow of $-1.16B, signaling weaker underlying cash strength.
Free Cash Flow
Sun Pharma Advanced Research Company Limited generates weak or negative free cash flow of $-1.39B, restricting financial flexibility.
FCF Per Share
Each share generates $-4.28 in free cash annually.
FCF Yield
SPARC.BO converts -1.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.006
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
11.09
vs 25 benchmark
ROA
Return on assets percentage
0.72
vs 25 benchmark
ROCE
Return on capital employed
1.12
vs 25 benchmark
How SPARC.BO Stacks Against Its Sector Peers
| Metric | SPARC.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.87 | 29.06 | Better (Cheaper) |
| ROE | 1108.87% | 733.00% | Excellent |
| Net Margin | 82.65% | -53111.00% (disorted) | Strong |
| Debt/Equity | 0.42 | 0.38 | Neutral |
| Current Ratio | 2.47 | 4.02 | Strong Liquidity |
| ROA | 71.55% | -19397.00% (disorted) | Strong |
SPARC.BO outperforms its industry in 5 out of 6 key metrics, particularly excelling in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sun Pharma Advanced Research Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-24.58%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
11.51%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-37.95%
Industry Style: Defensive, Growth, Innovation
Declining